WEC Energy Group Inc (WEC)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 15,366,900 14,655,700 13,472,400 11,672,800 11,171,400
Total stockholders’ equity US$ in thousands 11,754,600 11,407,300 10,943,600 10,500,100 10,143,800
Debt-to-capital ratio 0.57 0.56 0.55 0.53 0.52

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,366,900K ÷ ($15,366,900K + $11,754,600K)
= 0.57

The debt-to-capital ratio of WEC Energy Group Inc has been steadily increasing over the past five years, from 0.56 in 2019 to 0.62 in 2023. This indicates that the company has been relying more on debt to finance its operations and investments compared to its total capital structure. A rising trend in the debt-to-capital ratio may suggest an increasing financial risk for the company, as higher levels of debt could lead to higher interest expenses and potential liquidity challenges in the future. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and stability in the long run.